MINUTES OF THE MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SODA SPRINGS, CARIBOU COUNTY, IDAHO HELD MAY 16TH, 2007.

MEETING CALLED TO ORDER AT 5:00PM BY KIRK L. HANSEN, MAYOR.

ROLL CALL SHOWED THE FOLLOWING PRESENT: KIRK L. HANSEN, MAYOR

RANDALL E. PRESCOTT, PRES.

MITCHELL J. HART

LYNDA LEE

ARNELL R. WALKER

EXCUSED:

ALSO PRESENT: Debbie Pugmire Lee Godfrey, Director

Ken Finlayson Tausha Vorwaller, Clerk

Clyde Nelson, Attorney

The invocation was given by Mitch Hart, Mayor Hansen then led everyone in the

‘Pledge of Allegiance’.

The Council reviewed the minutes from the last meeting. Councilmember Walker moved to dispense with the reading of the May 2nd, 2007 minutes and approve them as written. Councilmember Lee seconded the motion. All in favor, motion carried.

Debbie Pugmire thanked the Mayor and Council on behalf of herself, Ken Finlayson and the residents and businesses around Finlayson Subdivision for letting them voice their concerns and set up a committee to meet with Mr. Simmons of Soda Springs Phosphate to discuss the odor problem. Mrs. Pugmire reported that a meeting was held on May 4th with Larry Simmons of Soda Springs Phosphate, herself, Ken Finlayson, Councilmember Prescott, and Councilmember Hart. Mrs. Pugmire informed Mr. Simmons that she does not feel the odor has improved and stressed how important it is to her to be able to enjoy her home and property. She also stated that it is not fair to all the families that live near Soda Springs Phosphate to have to live with the terrible smell. Mr. Finlayson explained that he owns three homes and several lots in Finlayson Subdivision and expressed his concerns to Mr. Simmons about the economic impact that the odor has on the area and his business. Mr. Simmons apologized for the odor and explained that he has put over one hundred thousand dollars into the plant to try to control the odor. Mr. Simmons mentioned that when he bought the plant he had no idea that the odor was such a problem. Mr. Simmons explained that he was currently working with Mitch Hart on other smell abatement options and asked to have until July 1st, 2008 and if the odor problem is not resolved he agreed to move his business from the Industrial Park and clean-up the site. Mr. Simmons also asked that complaints continue to be forwarded to him. Mrs. Pugmire mentioned to the Mayor and Council that many residents and business owners have approached her and Mr. Finlayson since the meeting and were encouraged by Mr. Simmons willingness to relocate if the odor problem could not be resolved. Mrs. Pugmire asked that the Council help make sure this agreement is

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followed through and the deadline enforced. Mrs. Pugmire and Mr. Finlayson also encouraged all residents and business owners effected by the Soda Springs Phosphate odor to let the Mayor and Council know how they feel about the issue and the progress of the resolution. Councilmember Hart mentioned that Mrs. Pugmire’s report was a very accurate summary of the meeting and thanked her for coming.

The Mayor and Council reviewed the proposed changes to the Monsanto sewer contract that were suggested by Councilmember Hart at the last meeting. The wording discussed included; securing loans or using accumulated funds for capital improvements and also spelling out fund reserves as part of the base rate. The Mayor, Council and Staff discussed the wording changes at length. Clerk Vorwaller suggested spelling out fund reserves as part of the base rate in a new sewer rate resolution. Councilmember Prescott moved to approve striking the previous changes to the Monsanto sewer contract which included; section 3.3.2 which refers to securing loans for capital improvements, the change to section 7.1 referring to funds accumulated by the City and also the fund reserves wording in section 6.1.3. Councilmember Walker seconded the motion. All in favor, motion carried.

The Mayor and Council reviewed the pre-paid accounts payable for May, 2007. Councilmember Hart moved to approve the pre-paid accounts payable for May 2007, seconded by Councilmember Lee. All in favor, motion carried.

(SEE ATTACHED ACCOUNTS PAYABLE REGISTER FOR DETAIL)

Director Godfrey requested to expend approximately $2000 to try some mosquito control products in the City and especially at Kelly Park. The Mayor and Council were supportive of the idea and approved the expenditure.

The Mayor and Council discussed items relating to the fiscal year 2008 budget. Health insurance options were considered. The renewal will be a 14% increase, an increase in the deductible was discussed which would lower the premium increase to 8%. The Water, Power and Sewer fund balances and upcoming projects were discussed. The proposed budget will be figured with a 15% power rate increase and a 10% water rate increase. A sewer rate increase will not be proposed. The 3% property tax increase was reviewed which would increase the property tax revenue by approximately $20,000. The entire proposed budget will be reviewed at the next meeting.

Mayor Hansen mentioned that he may be absent for the June 6th meeting. The Council will consider rescheduling if necessary.

Councilmember Hart moved to adjourn the meeting at 6:15pm seconded by Councilmember Prescott. All in favor, motion carried.

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PASSED AND APPROVED BY THE MAYOR AND CITY COUNCIL THIS 6TH DAY OF

JUNE, 2007.

Kirk L. Hansen, Mayor

ATTEST:

Tausha Vorwaller, Clerk